Stanbic Bank Opens Direct Yuan Transactions
Stanbic Bank Uganda has integrated with China’s Cross-Border Interbank Payment System (CIPS), becoming the first financial institution in the country to offer direct transactions in Chinese Yuan (RMB). The platform went live to cut foreign exchange exposure and streamline settlement for bilateral commerce between Uganda and China.
Uganda imported USD 3.3 billion worth of goods from China in 2025, while exports stood at USD 118 million. The new payment channel is structured to help local exporters access Chinese buyers more efficiently while lowering transaction costs for importers.
Removing Friction in Bilateral Trade
Presiding over the launch at the inaugural Stanbic–China Trade Forum in Kampala on Tuesday, Minister of State for Industry David Bahati stated that the infrastructure addresses long-standing payment and data friction in bilateral trade.
“China is one of Uganda’s most significant bilateral partners. This solution removes key bottlenecks and opens practical pathways for deeper industrial and commercial collaboration,” Bahati said.
Established globally by the People’s Bank of China in 2015, CIPS serves as the official clearing and settlement network for cross-border RMB transactions.
Driving Continental Growth Through Trade
Andrew Mashanda, Standard Bank Group’s Head of Business and Commercial Banking for Africa Regions and Offshore, noted that the integration supports the broader objective of driving continental growth through trade.
“Africa–China trade has been a key driver of growth across the continent. The next chapter will be defined not just by trade volumes, but by what we build together — manufacturing capacity, value addition, and infrastructure,” Mashanda said.
Pointing to Uganda’s expanding role as a commercial entry point into East Africa, Mashanda added that financial institutions must sustain investment channels for Chinese partners to foster shared economic outcomes.
Targeting a USD 500 Billion Economy
Stanbic Bank Uganda Chief Executive Mumba Kalifungwa emphasized that deploying CIPS marks a structural shift in trade execution by reducing reliance on intermediary currencies.
“The system will give Ugandan businesses a competitive edge and significantly contribute to government’s efforts to grow the economy ten times to reach USD 500 billion by 2040,” Kalifungwa said, noting that direct RMB settlement minimizes foreign exchange volatility and quickens transaction processing times.
Expanding Access via Beijing Trade Networks
As part of the broader rollout, Ugandan importers sourcing goods from China will also gain access to ‘Guomao’, a partnering platform that connects local enterprises directly to trade networks in Beijing to expand market reach.
